Under the shadow of the US-China trade war, grassroots Chinese citizens are resorting to frugality to protect themselves. Young and old alike are adopting a "savings as much as possible" lifestyle. A Shanghai resident commented that recently, while walking down the street, he noticed a surge in vegetable vendors and a decline in stores selling durable consumer goods like clothing. Young people lamented, "Money is becoming increasingly difficult to earn." From home kitchens to secondhand e-commerce platforms, saving money is becoming a defining theme in contemporary Chinese society.
"In the tariff and trade war, ordinary people have six survival rules. When the trade war started, I made three decisions. The first was to save as much as possible." "When the trade war started, what should ordinary people do? I made three decisions... Don't start a business, not even a small store. Don't become an internet celebrity. Sell everything valuable you have."
The above content is a "survival guide" issued by many Douyin platform bloggers to netizens, intended to remind young people to recognize the current economic situation in order to cope with the harsh environment that may arise in the future.
Since early March, the United States and China have imposed hefty tariffs on each other, with some tariffs exceeding 100%. This has led to a massive backlog of Chinese exports, causing businesses to halt operations and employees to be furloughed. Suddenly, the shadow of a manufacturing recession loomed over East and South China. More and more Chinese people, especially the younger generation, are adopting a "savings" approach.
The vegetable market is bustling, but the clothing store is deserted.
Shanghai resident He Xiuzhen told Radio Free Asia on Thursday (23rd) that she sees only vegetable vendors and shops every day, while clothing stores have suddenly become much fewer. She said, "You see, there's still some business besides the vegetable vendors, but it's not doing well. My neighborhood is full of vegetable vendors. There's a store every 30, 50, or even 100 meters. With so many, the competition is fierce. I don't buy clothes anymore; I just wear my old clothes. The '70s generation definitely won't spend lavishly anymore, because making money is hard."
As China's economy continues to slump, with waves of business closures and no signs of improvement in the job market, more and more people, like He Xiuzhen, are starting to tighten their belts. Ms. Chen, who lives in Jing'an District, told this station that many people are worried about the impact of the tariff war and a difficult future, and are therefore starting to save money. "I'm definitely a little worried, and I definitely need to take a long-term view. I don't know when things will get better. Supermarkets are pretty much deserted right now. Young people used to be the ones spending the most, but now they can't find jobs, so they're not spending and are being very frugal. They're going to restaurants less often. Those who work are bringing their own food from home."
Beijing's catering industry is struggling
In China's capital, Beijing, resident Ye Jinghuan told this station that many small restaurants have been forced to close or suspend operations due to a lack of customers. "Many restaurants in Beijing are indeed closed now. The few small restaurants near my home are rarely visited. Some restaurants have only one or two tables, and sometimes it's just us, my son, and my grandson dining with us. It can really be described as a dismal business. Some restaurants have a little more customers, but they're not as crowded as before."
The phenomenon of consumption downgrade is spreading from China's southeastern coastal areas to inland provinces like Sichuan and Guizhou. Kuang Feng from Lanzhou told reporters that locals are also starting to save more and deposit money in banks for emergencies: "Looking at the current situation, everyone wants to save more money or foreign currency. Those who can afford it are buying gold as a long-term reserve. Putting money in the bank isn't safe. You never know if your savings will be wiped out, or if war breaks out, you won't be able to withdraw your money."
Life becomes increasingly difficult as hopes for post-epidemic recovery fail
Chen Ziqiang, a resident of Foshan, Guangdong, told this station that after the pandemic, people initially expected China's economy to recover quickly. However, three years later, not only has the economy failed to improve, but the Sino-US trade war has also erupted, leaving ordinary people suffering. He said, "This recent trade war with the US (imposing tariffs on each other) has already caused the economy to collapse over the past few years. Don't be fooled by the propaganda about Xi Jinping's leadership, the improvement in development, the strengthening of the military, and so on. Ordinary people's lives have been much worse. The so-called 'increase in average income' is simply because so many high-income earners are driving up the average income of the poor."
Some scholars believe that in China's current context, frugality is no longer simply an individual choice of thriftiness, but a societal phenomenon. Faced with the combined pressures of economic downturn, the impact of the trade war, and job uncertainty, more and more Chinese are proactively cutting back on spending to mitigate future risks. This trend reflects the current anxiety among the Chinese public.
